Pharmaceutical Company to Pay $27M for Medicaid Fraud

Teva Pharmaceuticals will pay $27 million to settle allegations of Medicaid fraud revealed by a whistleblower, according to a news release from Florida Attorney General Bill McCollum.

Ven-A-Care, a Key West, Fla.-based pharmacy, brought allegations against Teva, claiming the company was violating the Florida False Claims Act by allegedly inflating the prices of various medications distributed by pharmacies and other providers reimbursed by the state Medicaid program. This led to the overpayment of millions of dollars in pharmacy reimbursements, according to the release.

Of the $27 million Teva agreed to pay in settlements, $3.5 million will be paid to the state's general revenue fund; $387,000 will go to the Florida Medicaid Fraud Informant Reward Program; and more than $7.1 million will go to the Agency for Health Care Administration, with the rest of the settlement going to the federal government and Ven-A-Care.

Read the news release on the Teva fraud settlement.

Read more coverage on healthcare fraud:

- Fraud Prevention Efforts Discussed at First Healthcare Summit

- 10 Physician Fraud and Abuse Cases Making Recent Headlines

- California Chiropractor Sentenced for Healthcare Fraud

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